News and financial reports

Baader Bank on growth path

Baader Bank delivers extraordinary group results for 2020: Earnings before tax came to EUR 56.0 million (previous year: EUR 68,000), while total revenue increases to EUR 212.7 million (previous year: EUR 104.3 million) and the Group's operating result was EUR 81.5 million (previous year: EUR -8.0 million). The main factors contributing to this result are a very high trading income, higher commission income and largely positive contributions from the Group's subsidiaries.

Continued high trading volume on the stock exchanges and more than twice as many accounts and custody accounts

The course of Baader Bank's business in 2020 was characterised by both a very high trading volume on the stock exchanges and trading platforms and by the structural and sustainable development of its business lines. In particular, the integrated business model developed by Baader Bank, with securities trading and account/custody account management all in one place, coincided with the emerging stock exchange culture in Germany. In November 2020, Baader Bank reached the milestone of 100,000 custody account clients, meaning that it can now take on a pioneering role and thereby give the Group a further surge in growth.

At a Group level, the previous year's trading income rose significantly by more than 250% to EUR 168.2 million (previous year: EUR 46.1 million). Commission income also increased, including in the Multi Asset Brokerage and Research business lines. The Account and Custody business with asset managers continued to develop very well and these developments worked to underpin the development of the commission income. Higher trading volumes bring with them higher commission expenses, meaning that net commission income for 2020 decreased slightly by 4% to EUR 31.0 million (previous year: EUR 32.1 million).

At EUR 12.0 million, Baader Bank Group revenue was slightly below the previous year (EUR 12.8 million) at -7%, fed by the electricity yields generated from the Bank's own wind farm. Of negligible significance for the Group, the interest income and the current income for 2020 stood at EUR -2.6 million (previous year: EUR -0.8 million).

Other income fell by around EUR 10.0 million to EUR 4.1 million as a result of the dissolution of the fund for general banking risks included in the previous year.

Costs rose again, but in line with overall development, and operating result strongly improved once more

While the previous year saw savings in both personnel expenses and other administrative expenses, personnel expenses at a Group level rose in 2020 to a total of EUR 71.2 million (previous year: EUR 46.5 million) due to higher variable remuneration components as a result of the positive overall development. Other administrative and operating expenses rose moderately by EUR 3.5 million to EUR 48.1 million (previous year: EUR 44.6 million). The number of personnel remained mostly stable throughout the high volume of business seen; this highlights in particular the Bank's strong scaling capability.

A contribution to the fund for general banking risks was included in the total expenses for 2020; EUR 16.8 million was allocated to the fund in accordance with Section 340e(4) of the German Commercial Code (HGB). As a result, total expenses were higher in 2020, increasing by EUR 52.3 million to EUR 156.6 million (previous year: EUR 104.2 million).

The Baader Bank Group concluded the past financial year with a clearly positive operating result of EUR 81.5 million and visibly increased this result (previous year: EUR -8.0 million). This demonstrates the adjustments implemented in the individual strategies of the six business lines, as well as the effects of the high trading volume on the markets.

At EUR 20.4 million, depreciations within the Baader Bank Group increased by EUR 7.3 million in the 2020 financial year (previous year total: EUR 13.1 million). Of this amount, EUR 11.1 million related to depreciation and value adjustments on intangible assets and property, plant and equipment and EUR 9.3 million related to amortisation and value adjustments on receivables and certain securities treated as assets.

Overall, Baader Bank Group generated earnings before tax (EBT) of EUR 56.0 million in the 2020 financial year (previous year: EUR 68,000) and reported significantly higher consolidated earnings after tax of EUR 46.5 million (previous year: EUR -591,000).

Strong capitalisation ratios, stable number of employees

The balance sheet total amounted to EUR 888.6 million on the reporting date of 31 December 2020 (previous year: EUR 617.4 million). The balance sheet equity ratio was 14% (previous year: 12%) and the modified equity ratio is 17% (previous year: 14%).

As at 31 December 2020, the number of employees in the Baader Bank Group rose to 420, compared to 403 as at 31 December 2019.

2021 outlook

In the first months of the new financial year, it is expected that the high level of activity of trading participants in the international capital and financial markets will continue, and a further strong increase in demand for account and custody account services at Baader Bank is also expected. The general conditions for Baader Bank therefore remain positive. It is also expected that further effects of the implemented and partially ongoing restructuring and organisational measures will underpin a corresponding sustainable development in 2021 and beyond.

If these general conditions continue throughout the coming year, the Baader Bank Board of Directors expects that the Baader Bank Group's EBT for the 2021 financial year will exceed the 2020 result of EUR 56.0 million.

Given the uncertain, exogenous influencing factors, the Board of Directors is of the opinion that reliable forecasts for the business development can only be made with reservations. For this reason, the statements, expectations and forecasts on the future development of Baader Bank are based on the information and knowledge available to the company at the time of publication.

Subject to the approval of the Annual General Meeting, the Baader Bank Board of Directors still intends to pay a dividend of EUR 0.25 per share for the 2020 financial year. The shareholders' meeting is expected to take place on 1 July 2021 in a virtual format. Baader Bank's annual report for 2020 will be made available in the "Financial Reports" section of the Company's website in mid-May 2021 when the annual shareholders' meeting is convened.

Overview of key figures

Reported in accordance with the provisions of the German Commercial Code (HGB).

Further information is available from:

Baader Bank AG
Weihenstephaner Strasse 4
85716 Unterschleissheim, Germany

Florian E. Schopf
Company Spokesperson
Managing Director
Head of Group Strategy & Communication

T +49 89 5150 1013
M +49 160 7188826
florian.schopf@baaderbank.de

About Baader Bank AG:

Baader Bank is the bank for the capital market. It allows its clients to access international capital markets and to invest in financial products in an effective, efficient and secure manner. The bank uses the latest innovations in the banking industry for products, processes and technology to generate added value for its clients. As a family-run, full-service bank with its head office in Unterschleissheim, near Munich, it employs around 400 staff and operates in the business lines of Market Making, Capital Markets, Multi Asset Brokerage, Asset Management Services, Banking Services and Research.

Further information can also be found online:

Company website: www.baaderbank.de
Twitter: https://twitter.com/Baader_Bank
LinkedIn: https://www.linkedin.com/company/98924/
Xing: https://www.xing.com/companies/baaderbankag?sc_o=da980_e
YouTube: https://www.youtube.com/channel/UCDJ7PGKWwtafrPSFDI3nmsQ